Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13, ADR OTC: DFBRY) announced that it will invest in the rebranding of the Arriva Express Guadalajara Plaza del Sol Hotel to the international brand, AC Hotels by Marriott; therefore the new hotel will be called the AC Hotels by Marriott Guadalajara Expo.
In August 2015, Fibra Inn paid Ps. 275.0 million for the acquisition of the Arriva Express and Staybridge Suites hotels. The Company decided to include the AC Hotels by Marriott global brand in its portfolio, which is a Lifestyle Premium offering, and will allow Fibra Inn to maximize its benefit from the hotel location via the use of a global brand, as it had previously done in other hotels in the portfolio that were also strategically located. With this investment, Fibra Inn expects to reach an average room rate increase of over 70% during the first year of operations. The Company expects to invest Ps. 176.8 million in this project and this investment would reach a marginal cap rate of 10.6% for 2019. Considering both properties, the combined total cap rate for 2019 is estimated in 11.0%.
Renovations began in December 2016 and this hotel is expected to initiate operations during the second quarter of 2017. Grupo Hotelero Prisma, a Fibra Inn related company, will be in charge of the hotel operations. The property will operate in the select-service segment with 178 rooms.
Oscar Calvillo, Fibra Inn’s Chief Executive Officer, stated: “The inclusion of the AC Hotels by Marriott represents the 15th global brand in Fibra Inn’s portfolio. This property, together with Staybridge hotel were acquired at a reasonable price, which together with the rebranding investment, results in value generation. Now we will have a completely renovated property that will offer our guests premium services and will contribute to higher profitability, operating under the highly performing Marriott brand and with a hotel management that has a proven track record adhering to Fibra Inn’s high standards.”
To date, Fibra Inn has a total portfolio of 43 properties in operation. The total is 7,113 rooms, of which 6,713 are rooms in operation and 400 are under construction. Additionally, Fibra Inn has minority participation with third parties in the Strategic Hotel Acquisition Pipeline model, which represents 430 rooms.
Logos, product and company names mentioned are the property of their respective owners.